ni 43-101 technical report - caballo blanco project - Goldgroup Mining

P a g e | 4713. MINERAL PROCESSING AND METALLURGICAL TESTING13.1 Metallurgical Testing in 2009/2010 - GoldgroupAs part of Goldgroup’s 2009 due diligence work at Caballo Blanco, the Company cut eight samples frompreviously split drill core from the La Paila Zone. These samples were taken to represent different orecharacteristics from low grade (1.5g/t Au).The samples were crushed to -1/2 inch and were leached for 144 hours by standard ‘bottle roll’ withcyanide solutions at the Company’s in-house facility. Results show that the five samples with head gradesbelow 1 gram gold gave high recoveries within 24 to 48 hours, while three samples above 1 gram goldgave slower recovery after the 144 hours. The three higher grade samples were then crushed to -1/4 inchand run for a further 48 hours improving their recoveries to 74.5%, 89% and 91%. Recoveries for the lowgrade material were close to 100%.Mining engineers from Goldgroup concluded; “These initial bottle rolls indicate that the ore is highlyamenable to leaching. The gold ore is totally oxidised to at least 300 metres depth and is benign inleaching since there appears to be no other minerals or deleterious materials present. This indicates lowreagent consumption in the commercial heap leach process.”The authors caution that the initial ‘bottle roll’ test work described in this section for La Paila ispreliminary in nature and may not be representative of true recoveries obtained in the future.Table7. Caballo Blanco (La Paila Zone) Preliminary ‘in-house’ Bottle Roll Tests by Goldgroup - 2009INITIAL RECOVERED TAILS CALCULATED LEACH CRUSHSAMPLE FIRE GOLD g/t ASSAY HEAD GRADE % TIME SIZEASSAYg/tg/tg/t RECOVERY hrsCBN-1 0.78 1.1 141 144 -1/2”CBN-2 2.79 2.83 0.97 3.8 74.5 196 -1/2”, -1/4”CBN-3 0.46 0.45 98 144 -1/2”CBN-4 0.25 0.22 88 144 -1/2”CBN-5 0.47 0.5 106 144 -1/2”CBN-6 1.32 1.6 0.185 1.79 89 196 -1/2”, -1/4”CBN-7 0.27 0.32 118 144 -1/2”CBN-8 1.21 1.37 0.125 1.5 91 196 -1/2”, -1/4”All samples were run for an initial 144 hrs, at which time samples 2, 6 and 8 showed recoveries of 59%, 78% and79% respectively. Samples 2, 6 and 8 were again dried and re-crushed to minus ¼” and leached for another 48 hrsand gave additional recoveries.13.2 Metallurgical Testing in 2010/2011 - GoldgroupAfter the initial success of the preliminary bottle roll testing Goldgroup constructed an onsite laboratoryto conduct column leach testing on mineralized material under local conditions. The laboratory contains acrushing and screening facility a Perkin Elmer AAnalyst 200 Atomic Absorption Spectrometer forreading gold and silver contained in solution and test columns of 6 inch, 16 inch and 40 inch diameters.Goldgroup Mining Inc.Caballo Blanco Project - La Paila Resource update Feb, 2012